The important thing to recognise is that, although these changes are upon us, it is not too late to act. Here’s a run down of the main April changes and what businesses need to do to prepare.
Holiday records – don’t get caught out
One of the changes that may have flown under the radar is the introduction of a new legal duty to keep detailed holiday and holiday pay records for six years.
Employers must now be able to demonstrate not only how much leave workers have taken, but also how holiday pay has been calculated and whether any leave has been carried forward or paid in lieu. The requirement applies to all workers, including those on irregular or casual arrangements.
What makes this particularly challenging is the lack of clear guidance on what will constitute “adequate” records, leaving employers to make reasonable, defensible decisions in the absence of strict rules.
SSP changes: More cost, more responsibility
Reforms to Statutory Sick Pay (SSP) will have an immediate operational and financial impact. The removal of the three-day waiting period means that SSP is now payable from the first day of absence and eligibility is no longer restricted by a lower earnings threshold.
For employers who do not already offer enhanced sick pay, this is likely to increase costs and may require a more proactive approach to managing sickness absence and supporting employee wellbeing.
Day-one family rights
Paternity leave and parental leave will become day-one entitlements, removing the previous requirement for 26 weeks’ service. While eligibility for statutory pay in some cases still depends on length of service, the shift in leave entitlement means policies and internal guidance will need to be updated to reflect the new position. Bereaved Partners Paternity Leave is introduced giving a right to up to a year’s unpaid leave.
The Fair Work Agency
There will also be a new government body, the Fair Work Agency, in place from 7 April which will have responsibility forcing compliance and, in some cases, bringing claims on behalf of workers. While it may take time for its full powers to be exercised in practice, its existence signals a clear intention towards greater scrutiny.
Other changes
In addition, complaints of sexual harassment are now clearly recognised as protected disclosures under whistleblowing law, meaning employees raising such concerns are afforded stronger legal protection and employers face potentially uncapped liability if those protections are breached.
In large scale redundancy cases, protective awards for failing to collectively consult are doubled from 90 to 180 days’ pay.
What should you do right now?
For employers who have not yet prepared, the priority now should be to take practical, immediate steps.
Reviewing and updating policies, particularly in relation to sick pay and family leave, is a sensible starting point. Ensuring that systems are in place to capture and retain holiday records for the required six-year period is equally also important. Beyond this, managers should be made aware of the changes so that they can apply them consistently in day-to-day decision-making.
Don’t forget that many other aspects of the Employment Rights Act are being implemented later. Taking action now to ensure compliance will put your organisation in a far stronger position than delaying further.
If you have any questions about how these new rules will affect your organisation, contact the Employment team at Downs Solicitors to see how we can help.
Contact David Seals
